Question 1

In 1996,"mad cow" disease caused the European Union to ban imported British beef and the British government to ban the sale of older cattle.The effect on the market for British beef was for

Accepted Answer

The ban on older cattle and the fear of mad cow disease caused a decrease in demand for British beef, as consumers were hesitant to purchase it. Additionally, supply decreased due to the ban on exports to the EU, further increasing the decrease in demand. Therefore, the market for British beef experienced a decrease in both demand and supply.

Question 2

When economists refer to small buyers in the market,they are referring to the notion that

Accepted Answer

When economists refer to small buyers in the market, they are referring to the notion that no individual buyer has enough market power to influence the price of a good. This is because there are many buyers in the market, and each individual buyer's purchases are relatively small compared to the total demand for the good.

Question 3

Refer to the graphs below.In the 1990s,corporations began to find new ways to incorporate recycled materials in new products.The effect on the market for recycled materials is best shown by

Accepted Answer

The answer of Refer to the graphs below.In the 1990s,corporations...

Question 4

The supply and demand model is not appropriate when analyzing markets where

Accepted Answer

The supply and demand model assumes perfect competition, which requires many sellers. When there are few sellers, the market may be more accurately described by models of imperfect competition, such as monopoly or oligopoly.

Question 5

The supply and demand model is not appropriate when analyzing markets where

Accepted Answer

The supply and demand model assumes that transactions are costless and therefore cannot account for markets with transaction costs, such as brokers' fees, transportation costs, and taxes.

Question 6

One of the assumptions of the supply and demand model is that

Accepted Answer

The supply and demand model assumes that suppliers provide identical products, which is a characteristic of a perfectly competitive market.

Question 7

Since 1990,per-capita income in China has risen.In addition,computer manufacturers have overcome the enormous 13,000 character barrier to creating a workable keyboard through voice and handwriting.The most likely effect on the market for PCs in China was that initially price _______ while quantity sold _________.

Accepted Answer

Initially, the price of PCs likely rose due to increased demand from higher per-capita income and improved usability. Over time, as supply increased to meet demand, prices would fall. The quantity sold would rise continuously due to the growing market and improved accessibility.

Question 8

If both buyers and sellers expect the price of a commodity to rise in the future,it is likely that supply will ________ and demand will ________.

Accepted Answer

If both buyers and sellers expect the price to rise, sellers may hold back supply to sell at a higher price later, decreasing current supply. Buyers may purchase more now to avoid higher prices later, increasing current demand.

Question 9

In the mid-1990s,The Wall Street Journal reported a renewed interest in eating caviar.At the same time,the supply of Russian caviar was shrinking following the collapse of Soviet Communism.As a result of these events,one would expect that the price of caviar ________ while the quantity sold _______.

Accepted Answer

The increased interest in eating caviar would increase demand, while the shrinking supply would decrease supply. Both factors would lead to an increase in price, but the effect on quantity sold is indeterminate without knowing the relative magnitudes of the shifts in demand and supply.

Question 10

The graphs below refer to the market for good X.Firms can produce either good X or good Y,which consumers consider to be a substitute for good X.A decrease in the price of good Y will to lead to the shifts shown by

Accepted Answer

The answer of The graphs below refer to the market...

Question 11

Refer to the graphs below.A recent report circulated among consumers indicated that 50 additional intensive-care patients die for every 1,000 who are managed with a heart device,known as the right heart catheter,and subsequent Health Canada action to limit distribution of the catheter would most likely cause the shifts shown by

Accepted Answer

The answer of Refer to the graphs below.A recent report...

Question 12

Season tickets to the Toronto Maple Leafs games are sold out at $100 per game,leaving some fans without tickets.As the season progresses,it is clear that the Maple Leafs will make it to the playoffs.What is the effect on demand for and resale price of Maple Leafs tickets,assuming resale is legal?

Accepted Answer

As the Maple Leafs make it to the playoffs, the demand for tickets will rise as fans want to attend the high-stakes games. Since season tickets are sold out, fans will turn to resale markets, leading to an increase in resale prices. Therefore, demand will rise and the resale price will rise.

Question 13

Suppose that a recent,widely-circulated medical article reports new benefits of exercise.Simultaneously,the price of the parts needed to make exercise bicycles falls.What is the likely effect on the supply of and demand for exercise bicycles sold?

Accepted Answer

The new benefits of exercise will likely increase the demand for exercise equipment, including exercise bicycles. Additionally, the decrease in the price of parts will likely lead to an increase in supply of exercise bicycles. Therefore, both the supply and demand for exercise bicycles will likely shift to the right.

Question 14

One of the assumptions of the supply and demand model is that

Accepted Answer

One of the assumptions of the supply and demand model is that both buyers and sellers have perfect information about the product. This means that they know everything about the product, including quality, price, and availability, which allows them to make informed decisions about buying and selling. The other choices do not align with the assumption of perfect information and are therefore incorrect.

Question 15

If both buyers and sellers expect the price of a commodity to rise in the future,it is likely that equilibrium price will ________ and equilibrium quantity will ________.

Accepted Answer

When both buyers and sellers expect the price of a commodity to rise in the future, the demand for the commodity will increase and the supply may decrease. As a result, the equilibrium price will rise, and the equilibrium quantity may not change significantly. Therefore, option B is the best choice.

Question 16

When economists refer to small sellers in the market,they are referring to the notion that

Accepted Answer

Small sellers in economic terms mean that individual sellers cannot influence the market price, as they are price takers in a competitive market.

Quiz 3: Measuring Macroeconomic Performance: Wages, Employment and the Labour Market

In 1996,"mad cow" disease caused the European Union to ban imported British beef and the British government to ban the sale of older cattle.The effect on the market for British beef was for

When economists refer to small buyers in the market,they are referring to the notion that

Refer to the graphs below.In the 1990s,corporations began to find new ways to incorporate recycled materials in new products.The effect on the market for recycled materials is best shown by

The supply and demand model is not appropriate when analyzing markets where

The supply and demand model is not appropriate when analyzing markets where

One of the assumptions of the supply and demand model is that

If both buyers and sellers expect the price of a commodity to rise in the future,it is likely that supply will and demand will .

In the mid-1990s,The Wall Street Journal reported a renewed interest in eating caviar.At the same time,the supply of Russian caviar was shrinking following the collapse of Soviet Communism.As a result of these events,one would expect that the price of caviar __ while the quantity sold _.

The graphs below refer to the market for good X.Firms can produce either good X or good Y,which consumers consider to be a substitute for good X.A decrease in the price of good Y will to lead to the shifts shown by

Season tickets to the Toronto Maple Leafs games are sold out at $100 per game,leaving some fans without tickets.As the season progresses,it is clear that the Maple Leafs will make it to the playoffs.What is the effect on demand for and resale price of Maple Leafs tickets,assuming resale is legal?

Suppose that a recent,widely-circulated medical article reports new benefits of exercise.Simultaneously,the price of the parts needed to make exercise bicycles falls.What is the likely effect on the supply of and demand for exercise bicycles sold?

One of the assumptions of the supply and demand model is that

If both buyers and sellers expect the price of a commodity to rise in the future,it is likely that equilibrium price will and equilibrium quantity will .

When economists refer to small sellers in the market,they are referring to the notion that